Enterprise Architecture Definition Business Process Management (BPM)
Enterprise Architecture Definition Business Process Management (BPM)
Enterprise Architecture Definition Business Process Management (BPM)
May 2010
Author:
Enterprise Architecture Council
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May 2010 ii
Business Process Management (BPM) - Version No. 3.2
Table of Contents
1.0
1.1 Overview .................................................................................................................. 1
1.2 Scope........................................................................................................................ 1
1.3 Current Architecture................................................................................................ 1
1.4 Target Architecture.................................................................................................. 2
1.5 Strategy and Roadmap ............................................................................................ 4
1.5.1 Establish Business Process Management Methodology and Governance .................. 4
1.5.2 Create a Process-Centric FTB ..................................................................................... 4
1.5.3 Promote Cultural Change ............................................................................................. 4
1.5.4 Implement a Business Process Management Suite (BPMS) ....................................... 4
1.5.5 High-level Timeline ....................................................................................................... 5
1.5.6 Dependencies ............................................................................................................... 5
1.6 Closing ..................................................................................................................... 6
2.0
2.1 Overview .................................................................................................................. 8
2.1.1 Enterprise Architecture Council .................................................................................... 8
2.1.2 BPM Center of Excellence............................................................................................ 8
2.1.3 BPM Defined ................................................................................................................ 9
2.1.4 BPM Components ...................................................................................................... 10
2.1.5 BPM at FTB ................................................................................................................ 11
2.2 Business Intelligence (Process Monitoring) ........................................................ 12
2.2.1 History of BI at FTB .................................................................................................... 12
2.2.2 BI Technical Architecture ............................................................................................ 12
2.2.3 BI Business Architecture ............................................................................................ 14
2.2.3.1 Primary BI Services ................................................................................................. 14
2.2.3.2 Other BI Activities .................................................................................................... 14
2.2.3.3 BI Users .................................................................................................................. 15
2.2.3.4 BI and Business Process Analysis .......................................................................... 15
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Business Process Management (BPM) - Version No. 3.2
List of Figures
List of Tables
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Enterprise Architecture Definition – Business Process Management
1.0
1.1 Overview
The Franchise Tax Board (FTB) definition of Business Process Management (BPM) is “A
strategy for managing and improving the performance of a business through continuous
optimization of business processes in a closed-loop cycle of modeling, execution, and
measurement.” This includes the methods, techniques, and tools used to design, enact, control,
and analyze business processes involving people, systems, applications, data, and
organizations helping to improve business agility and performance.
Significant changes at FTB are proceeding to ensure comprehensive and successful enterprise-
wide BPM solutions for establishing practices and governance, and managing key business
processes. The pursuit of these BPM enterprise-level solutions focuses on the:
Way people in the organization think: thoughts, expectations, and conclusions, of the
members of the organization
Norms: often referred to as corporate culture, the standards, models, and patterns which
guide behavior
Systems and processes: processes and technologies used to do business
1.2 Scope
This BPM Enterprise Architecture Definition (EAD) defines the current and target, states of
FTB‟s BPM architecture. Additionally, it provides a gap analysis and implementation strategy for
each of the following subject areas:
BPM Methodology
BPM Governance
BPM Technical and Business Architectures
BPM-Enabling Technologies
FTB‟s current organizational structure is function-centric, also known as siloed, and structurally
organized by a collection of common tasks or functions. FTB utilizes various aspects of BPM,
but lacks a standard, recognized, and accepted BPM methodology or BPM governance for the
enterprise. FTB utilizes various components of BPM including:
Process Monitoring (Business Intelligence)
Workflow Automation
Enterprise Content Management
Process Modeling
Business Rules Management
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The majority of these BPM components are specific to a single system or business process,
vary between systems and business processes, are not shared or re-used throughout the
enterprise; additionally a number of the processes are intensively manual. Finally, FTB lacks
a Business Process Management Suite (BPMS) to assist in managing enterprise
business processes.
The scope of the BPM EAD targets the capabilities, usability, and benefits of a BPMS, as
well as, the establishment of successful enterprise BPM methodology and governance. FTB‟s
enterprise-focused BPM target architecture includes the following:
BPM Governance – FTB‟s target BPM governance is comprised of a well-defined structure and
developed governance body that is responsible for all strategic, and tactical, BPM governance.
Furthermore, BPM methodology provides a pragmatic approach for managing and improving
FTB core business functions. This enables decisions that affect business performance,
processes, and strategies to be based on first-hand data, strategic analysis, and real world
testing. The desired outcome is providing quality, low-cost, fast results for the organization.
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Business Process Management Suite (BPMS) – FTB‟s target BPM architecture requires the
procurement of a software package that will facilitate the process management aspects of BPM,
including process design, workflow, applications, integration, and activity monitoring (in system
and human-centric environments). This software package must support business needs by
defining, modeling, simulating, deploying, executing, monitoring, analyzing, automating, and
optimizing business processes.
A BPMS offers tools (e.g. software), and solutions (e.g. integration), that depict, analyze, and
measure Key Performance Indicators (KPIs) that will optimize business process and workload
management. The BPMS environment contains all operating information, and context of
business process execution, which are easily available and reusable to all business and IT
areas; thus, increasing the speed and agility of core business processes by providing a system
that can implement efficient change to business operations, application support, or data
access. Additionally, a BPMS will award control of processes to business users and increase
speed of delivery, which in turn will support a transition to Service-Oriented Architecture (SOA)
based applications and an enterprise data access approach (e.g. enterprise data warehouse).
Furthermore, the implementation of a BPMS will address the current needs of business
managers to establish and control operational processes and manage work outcomes
efficiently. In addition, it will permit authorized personal/staff to retrieve, view, and confirm
comprehensive information to simulate changes, compare costs and improvements, and know
the impacts of the change prior to making operational reengineering decisions. The BPMS
environment provides a foundation to deliver business models and information. Business
managers working with data analysts develop applications, which are generated from a
combination of business models, and rules definitions, to manage workflows, track work and
processes, and monitor performance.
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Through the EAC, the BPM Center of Excellence (CoE), and the Enterprise Data to
Revenue (EDR) project, FTB will define and implement BPM governance, and identify all
value-propositions/value-chains and promote enterprise adoption of BPM methodologies,
standards, models, and patterns.
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1.5.6 Dependencies
Implementation of a robust and comprehensive BPMS at FTB will be dependent upon these
architectural disciplines:
Service Oriented Architecture (SOA): There is a two-way relationship with SOA. BPMS
tools will be used to design the system-to-system process flows. SOA will be required to
be truly process centric. With the implementation of SOA, business users will be able to
use business application modeling to record the activities within a database and analyze
how things are working. Users can execute their process changes within the systems in
real-time with SOA. This gives users control of systems in the end-to-end processing
Data management: Store models, flows, rules, etc. Data management will be important
for data quality assurance
Identity and Access Management: Used to define and control the workflow. The
implementation of the IAM architecture will ensure that workflow rules can be enforced
as processes move between systems and staff
ECM: For unstructured data, BPMS could supply the workflow
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1.6 Closing
Organizational, cultural, and process changes for how FTB does business will be necessary for
successful BPM implementation. In addition, implementation of a BPMS for efficient BPM will
be necessary. Increased business agility is one of the many benefits realized from adopting
BPM. The gains realized through new BPM practices and enabling technologies propel agility
throughout the organization. BPM requires business managers to learn real-time management
skills to achieve greater business agility. Those skill sets include collaboration and consensus
building. Shared control between business managers and IT managers shortens the cycle time
to make process improvements. IT development staff must leave behind the long-held belief
that they must perform all the front-end analysis and process design. IT managers must
proactively encourage a progressive shift to shared responsibility for these activities with
business process analysts, business managers and process owners.
The FTB Target Architecture Model, (Figure 1.6 1: SOA Architectural Definition – “To Be”
Technical Architecture Model), depicts FTB‟s goal for future business and IT service delivery.
This model illustrates the high-level relationships between FTB‟s core services and its
customers in addition to other core services that are required to align in order to achieve a cost
effective and efficient solution. Each core service is related to a specific Enterprise Architectural
Definition (EAD).
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Figure 1.6-1: BPM Architectural Definition – “To Be” Technical Architecture Model
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2.0
2.1 Overview
Franchise Tax Board‟s (FTB) current organizational structure is function-centric (also known
as siloed), that is generally FTB is structurally organized by a collection of common tasks or
functions. FTB utilizes various aspects of BPM, but does not have a standard, recognized, and
accepted BPM methodology in place for the enterprise. Nor does FTB have a Business
Process Management Suite (BPMS) in place to assist in managing business processes. The
organization commonly performs BPM in various manners related to the organizational structure
of the business versus an enterprise approach. However, FTB has an established Enterprise
Architecture Council (EAC) and a BPM Center of Excellence (CoE) that has begun laying the
foundation for enterprise BPM at FTB. Additionally, FTB has begun plans to establish a BPM
Governance process (refer to the Governance EAD).
The BPM CoE tackled several efforts during its 2008/2009 sessions, including:
Establishing a BPM Glossary, BPMS Standards, and BPM Best Practices
Adopting BPMN (Business Process Modeling Notation)
Creating business process maps (models) for the business processes as related to our
main tax processing systems and identifying FTB Sections and roles responsible for the
activities in the maps
Creating the FTB Business Reference Model (BRM)
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Through researching industry best practices, the BPM CoE has identified these BPM
components as depicted in the figure (Figure 2.1-1: Business Process Management Wheel)
below and compiled the component definitions as shown in section 2.1.4.
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Most all of these components at FTB are specific to a single system or business process, vary
between systems and business processes, and are not shared or re-used throughout the
enterprise. Additionally, several of the components in use are intensively manual processes.
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The current BI organization and system architectures are tightly connected to the evolution of
overall IT services in the department. Prior to 1995, IT services at FTB were “centralized” in one
organization that serviced all FTB business areas. Information needs were primarily provided
through mainframe applications that lent themselves to central control and management. The
increasing use of personal computers and the emergence of distributed computing, coupled with
a concern about the ability of the department to respond to rapid changes in technology for
meeting business needs, prompted FTB to reorganize technology services in 1995 into a
“decentralized” model. Under this model, each major business area was responsible for
developing and maintaining the specific technologies that supported their business activity.
The deployment of various projects influenced the emergence of BI at FTB, as reporting and
analytical needs were tightly integrated with the deployment of each project normally without
consideration to enterprise BI needs. The corresponding BI efforts were developed at different
times, under different management, using different products, and in silos:
The current BI technical architecture parallels the data architecture and adds the process and
delivery mechanisms for BI focused data. Figure 2.2-1 illustrates the current technical
architecture and environment of FTB‟s BI systems. The diagram depicts the source systems,
data warehousing systems, and reporting and analysis systems currently in use.
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BIDS provides information about how FTB is functioning, including performance measurements,
cost/revenue measurements and customer demographic information. BIDS makes this
information available to the enterprise in data marts, data warehouses, and other summary
sets of information. BIDS provides information to customers through query and reporting
mechanisms and ad hoc services.
BIDS implemented a standardized development lifecycle, which they consider key to improving
their ability to effectively meet BI users‟ needs, increase the quality of data and products, and
reduce potential redundancy and development costs. As part of this lifecycle, the BIDS group is
empowered to approve or deny all proposed changes to the BI systems reducing the potential
impact to other BI systems and the perpetuation of stovepipe systems. This has helped the
organization move away from the prior practices of development or system changes that
ignored the impact to other BI systems or other development activities, practices that
perpetuated stovepipe systems.
Economic and Statistical Research Bureau (ESRB) – provides a wide range of reports
and analytics relating to corporate and individual filing activity and demographics. ESRB
is responsible for overseeing the creation of annual filing data samples that are critical
for determining the potential impacts of tax policy changes or trends in economic activity.
The information is used for a variety of purposes, such as the department's Annual
Report, news releases, revenue impact analyses, a variety of special studies, and
providing answers to questions posed by other departmental units, other state
departments, the Legislature, and the general public. Although the organization does
not represent itself as a “provider of BI,” many of their activities are clearly BI in nature.
Privacy, Security and Disclosure Bureau (PSDB) – develops security policies and
procedures, including security measures for the protection of FTB‟s facilities, and to
prevent, detect, and track unauthorized access to information technology systems,
networks, and data. Some activity related to tracking data exchange agreements with
third parties and analyzing system usage activity for potential security policy violations
are BI in nature.
Financial Management Bureau (FMB) – provides reports and analytical support relating
to CALSTARS and Activity Based Costing (ABC), often considered to be within the
BI umbrella.
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Compliance Systems Bureau (CSB) – provides some reporting and analytics related to
various applications developed and maintained for audit and collection activity, including
ad hoc support. BIDS often refers ad hoc support to this area when requests actually
need operational data associated to systems supported by this group.
Tax Systems and Applications Bureau (TSAB) – provides reporting and analytics relating
to tax systems and web-based systems that support taxpayer activities through FTB‟s
public website. Web statistics are collected using a commercial-off-the-shelf application
and provided to users through FTB‟s intranet or through ad hoc support.
Infrastructure Services Bureau (ISB) – provides for the design, implementation and day-
to-day operation of a “Reporting Info Mart”, that is a BI application focused on call center
and IVR data.
2.2.3.3 BI Users
Figure 2.2-2: User Base for FTB BI Systems
Type of Users
BI System Total
Casual Users Power Users Developers
ARMR 500 12 5 517
PIT Return DM 50 11 4 65
ECAIR DW 20 10 5 35
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INC – Case Management Template (CMT) – the CMT component for workflow
management is User Task Window (UTW). UTW allows users to view assigned tasks
and “work” those tasks to resolution, but this process is not currently used due to
performance issues, instead the BI unit performs queries to provide work lists. However,
the batch process that moves the case from state to state is being utilized
ARCS – uses workflow functions to move cases from state to state and adds them to
work lists for collectors based on business rules
IPACS – uses workflow functions to route batches through the applications that make up
IPACS. The workflow is automatic and a key part of the system, but can be monitored
and changed by managers
PASS – uses workflow functions to automatically route cases through the system.
RV/TI/BETS – uses workflow functions to automatically route tax returns through the
system, place returns on hold, and identify returns for review
Content Update Tool (CUT), Unicenter, ClearQuest: uses workflow functions to route
cases from state to state and automatically sends email notifications
TeamSite – uses workflow functions to route and approve content postings on FTB‟s
external website
Electronic data capture workload uses workflow automation functions via IPACS for
routing of imaged data.
Filing enforcement program uses limited workflow automation functions via INC. The
INC system has the capability for more mature workflow automation; however, due to
performance issues, it is not used to its fullest capability.
Collection program uses ARCS to move cases from state to state and to create work
lists for collectors to work; however many of the functions require manual intervention
and there is little ability for automatic exception handling.
Audit program uses PASS for candidate selection via modeling, to store electronic
content related to the case, and to change and track case status; however many of the
functions require manual intervention.
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Return validation programs use RV/TI and BETS for limited workflow automation to
identify returns requiring manual processing, holds, and review. RV and BETS
returns the case to the user until all required conditions are addressed and the return
is validated.
Content managers and approvers of content on the FTB Intranet use the CUT to change
and approve content posted to the FTB Intranet web pages. The CUT changes the
status of the web page to approval needed once changed and sends emails notifications
when the page has been changed requiring approval, and when the page requires
rework or is approved.
IT Helpdesk staff use Unicenter to enter requests for IT services, which creates a service
request ticket. Unicenter routes the service ticket to appropriate staff for resolution and
sends an email notification for each stage of the process.
Business analysts, system testers, and system developers use ClearQuest to enter IT
system and application change requests, which creates a change request ticket.
Unicenter routes the change ticket to the appropriate staff for handling, changes the
ticket status and sends an email notification for each stage of the process.
Content managers and approvers of content on the FTB external website use Teamsite
to approve and post content. Teamsite changes the status of the web page to approval
needed once changed and sends emails notifications when the page has been changed
requiring approval, and when the page requires rework or is approved and ready to be
loaded (e.g. posted to the external website).
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Manage – FTB manages content through folder organization and/or file name variations.
Tax document management is the most mature process using the IPACS and e-gateway
database and storage platforms. Other FTB processes use a variety of tools and
processes like Microsoft SharePoint, Serena PVCS Version Manager, Microsoft Visual
SourceSafe, IBM Rational ClearQuest, etc.
Store and Retrieve – FTB uses a variety of methods for storage of both paper and
electronic content, including paper storage in the warehouse to electronic storage on a
server/SAN. FTB performs retrieval in a variety of methods, from actual manual paper
file pulling and routing to automatic electronic workflow routing. The main retrieval
applications for tax documents are e-View and the Image Delivery Application (IDAX).
Collaboration – FTB does not generally share content in a centralized fashion or method
except for some in-house tax document processing systems. However, MS SharePoint
is being used for project collaboration on several projects.
Security – FTB controls security independently from platform to platform and usually
controls it within the application by the use of an access/authorization table. Various
content security methods are used including authentication, password protection, and
physical security access.
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Tandem- Data
Paper Receipt Data Collection (Long-Term Storage - Partial Data )
Accounting System
IPACS - Images and Data Data Only
Data Collection (Long Term Data Storage)
(Long-Term Storage – Partial Data)
Centralized
Validation
Scanning OCR Capture/KFI
eGateway- Data
(Long-Term Storage - ALL Data )
Electronic
Receipt
Swift
Web Services
Users
- Only Tax documents are being collected.
- No Tax Supporting Documents are being collected, i.e.. White mail.
- Users have to know if return is paper or electronic to use the appropriate viewing application.
- Only Partial data is being collected from the paper processes.
- All data is being collected from the electronic processes.
- Paper is still being stored by the department.
- No other Non-tax workloads are being imaged. eView Application
- Multiple databases are performing long-term storage and retention.
EC Category Examples
Organizational Flow Charts, Meeting Agendas, Meeting Minutes,
Administrative Duty Statements
Business Performance / Monthly Reports, Inventory Reports, Business Plans, Annual Reports, Statistical
Management Reports Reports
Business Process ARM Procedure Manuals, ARCS Release Planning, Audit Procedure Manuals,
Procedures Strategic Plans, Return Validation Manuals
Business Process Procedure Manuals, Application Code, System Code, System Requirements
Rules
Financial Reports, Financial Statement Worksheets, Budget Change Proposals,
Financial / Budget Schedule 3 Documents
Emails, Compressed Files, Data Files, Image Files, Video Files
Miscellaneous
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Capture – over 70% of the electronic content types are created using a Microsoft product
(Word, Excel, Visio, PowerPoint, Publisher, Outlook, FrontPage, Project, Access,
Internet Explorer, .NET). A distant 2nd is Adobe Acrobat/Reader with 6%.
Manage – approximately 70% of the time, FTB manages electronic content (i.e. version
control) through folder organization and/or file name variations. The majority of FTB‟s
sections are not clear on what version control is. Of those surveyed, 25% listed „Other‟
tools for managing electronic content as listed below:
o Microsoft SharePoint
o Serena PVCS Version Manager
o Microsoft Visual SourceSafe
o Interwoven TeamSite
o eRoom
o Autoforms
o IBM Rational ClearQuest
o McAfee HelpDesk
o Macromedia RoboHelp
(Note; “ERoom, Autoforms, IBM Rational ClearQuest, McAfee HelpDesk and Macromedia
RoboHelp are not considered version control tools. It may be possible staff are using these tools
to manage electronic content even if that is not the primary function of the tools.)
Store and Retrieve – about 90% of content at FTB is easily located; however, survey
results indicate redundancy is an issue.
Preserve – approximately 70% of FTB is not concerned with the need to centralize and
automate the retention of content.
Deliver – over 60% of electronic content is either routed from or routed to others. In
addition, 43% have workflows that are not automated and 28% of FTB does not know.
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Due to the limitations of these tools, EAC continues to research modeling tools that will be more
robust and better suit FTB‟s needs.
These business process models include major activities, most sub-activities, and many tasks.
In addition, the models identify the FTB sections responsible for the activities and the roles
performing those activities.
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FTB recently purchased Micro Focus Modernization Workbench, as part of the EDR project, to
extract, document, and analyze business rules from system application code such as COBOL,
Natural, JCL and Java.
While there are common methods used throughout FTB, each business area utilizes their own
method for documentation, change control, and storage of business rules. FTB documents,
changes, and stores business rules in various locations including requirement documents,
system specifications, procedure manuals, memos, system/application code, change requests,
and business flows. Because of the various documentation methods, rule visibility is regularly
an issue.
Often, multiple areas document the same business rules as the same rule frequently applies to
multiple business programs and processes. On the other extreme, some business rules have no
formal documentation, and very well may be buried deep in code with knowledge of the rules
residing only in the minds of staff associated with the business or code.
Frequent changes in law, policy, or procedures necessitate business rule changes. While in
some cases, rules can be changed “on the fly” (for example, TI has this capability for some
rules) some business rules can only be changed once a year due to the potential risk of
changing the rules and the need for extensive testing of the change. Ease of change is lacking
due to the inconsistent methods FTB uses for business rules management.
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3.0
3.1 Overview
The target architecture for business process management with an enterprise focus at
FTB includes:
A mature Enterprise Architecture Council
An expanded BPM Center of Excellence
A mature BPM Governance process
A mature BPM methodology
A mature process management method
A robust BPMS and corresponding technologies
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A mature BPM methodology requires holistic organizational management practices, with top
management understanding and involvement, process-aware information systems, well-defined
accountability and a culture receptive to business processes. It is based on a process
architecture, which captures the interrelationships between the key business processes and the
enabling support processes and their alignment with the strategies, goals, and policies of an
organization. BPM methodology provides an approach for managing and improving business
that allows decisions that affect the business‟ performance, processes, or strategies be based
on first-hand data, analyzed in a scrupulous manner and tested for authenticity in the real world.
The desired outcome is providing quality, low-cost, fast results for the organization.
Following a BPM methodology is critical. Organizations are in transition and long-standing
business practices may be in flux. BPM further drives and guides change. The management
discipline of BPM itself is not static; it too must respond to change. Strict governance and
procedures must be in place for business rule management and approval of process change.
Organizations must understand how better process management enables agile response to
change. The focus on improved process management forces the organization to adopt a greater
focus on process discipline. The only motivation for senior leadership to embrace such a
disruption to the status quo must lie in the promise of a significant benefit to the organization.
Increased business agility is one of the many outcomes realized from adopting BPM. The gains
realized through new BPM management practices and enabling technologies propel agility
throughout the organization. BPM requires business managers to learn real-time management
skills to achieve greater business agility. Those skill sets include collaboration and consensus
building. Shared control between business managers and IT managers shortens the cycle time
to make process improvements. IT development staff must leave behind the long-held belief
that they alone must perform all the front-end analysis and process design. IT managers must
proactively encourage a progressive shift to shared responsibility for these activities with
business process analysts, business managers and process owners.
BPMS technology places the control of processes back in the hands of business but does not
completely eliminate IT from BPM. A BPMS addresses the desire of business managers at FTB
to see and gain hands-on control of their business processes to manage work outcomes better.
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A BPMS environment contains all the operating information and the context of their
execution. This information is available and reusable. The BPMS tools allow authorized persons
to look up comprehensive information, confirm it, and redesign the operation knowing the
impacts, simulate changes, compare costs and improvements, and decide on the best action.
If a complete BPMS has been used as the foundation for this change environment, business
managers working with data analysts will be able to generate the applications that manage their
workflows and the overall processes, track work, and monitor performance. These operating
management applications are generated from a combination of business models and rules
definitions that are linked together. To provide the needed foundation, the BPMS environment
delivers the models and information on the business, the rules, the performance, the
applications, and the data flow that allows for proper application. Because this information
is integrated within the BPMS, it can be accessed and changed quickly with the operating
management applications being automatically generated and regenerated to support
any change.
The result is speed. In this environment, it is now possible to change the business operation, its
application support and its data access quickly. Additionally, if the IT group has moved to an
SOA (service-oriented architecture) based application and enterprise data access approach
(e.g. enterprise data warehouse), these changes may be able to happen in days. Legacy
application function and data interface changes are sometimes still a problem, but in many
cases, the automation support can be generated outside the legacy environment to save time
and improve flexibility.
Realizing the true potential of operational improvement requires flexible teams that are open to
using a range of tools and optional methodologies to deliver both immediate improvement and
focused continuous improvement. This mixture of disciplines should also take advantage of the
speed that BPM and BPMS tools can deliver. It is this immediate impact that allows an
operation to reach and sustain optimization.
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Orchestration Engine – coordinates the sequencing of the activities and steps (system
and manual) according to the flows and rules in the process model.
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Rules Engine – executes rules that abstract business policies and decision tables from
the underlying applications, and makes process changes more flexible. A rules engine is
a software system that executes one or more business rules in a runtime production
environment. It is commonly provided as a component of a BPMS which, among other
functions, provides the ability to: register, define, classify, and manage the rules, verify
consistency of rules definitions, define relationships between different rules, and relates
some rules to applications that are affected or need to enforce one or more of the rules.
Enterprise Service Bus(ESB) – links the model to other system assets (data and logic)
that support work steps. An ESB is a collection of components that comprise the
foundational services for more complex architectures via an event-driven and standards-
based messaging engine “the bus”.
Business Intelligence and Analysis Tools – provides business activity monitoring tools to
support analysis of data produced during process execution. Capabilities range from
reporting to online processing analysis to graphical user dashboards in real time with
proactive alerting.
Round‐trip engineering between the model and its physical implementation – changes
made to the model are easily reflected in the execution and changes to the resources
are easily fed back into the model.
Manipulation and management within the process context – with access to various forms
of business content (both structured and unstructured information).
Monitoring, reporting, analysis and notification of work activities and business events –
using both data about completed work transactions and in‐flight business transaction
data (in real time and offline, potentially for predictive analysis).
Management of all process components – (refer to Section 3.2.3) through the life cycle;
that is, access control, versioning, and descriptive metadata
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The workflow automation solution will provide the capability for the workflow system to route
exceptions to different work queues. It will also allow workflow managers to change business
rules easily, and make workflow routing decisions automatically based on those rules.
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Capture – both electronic and paper content will be funneled through a centralized
common process for validation, storage, delivery, retention, etc. This common process
routing allows FTB to utilize enterprise services. Current electronic content methods will
continue. Paper content will be collected using two input methods, centralized scanning
and satellite scanning. Centralized scanning will be by a common departmental system
that is scalable for FTB‟s large volume workloads. Satellite scanning will take place at
the document‟s originating source and would handle sensitive, postal mail, field scanning
processes, small workloads, administrative processes and tax supporting documents.
Satellite locations will route scanned images through the central common “imaging
pipeline” into the centralized archive for storage and retention.
Manage – specialized ECM systems will exist based on content category types. Tax
workloads use archives to process, and store, the content outside of the databases and
have a “pointer” to the content. This saves on overall database size, recoverability, back-
up times, etc.
Store and Retrieve – storing all content into a centralized archive will provide a single
point for the management, storage, retrieval, delivery, collaboration, and security. The
archives will also contain documents from FTB‟s out-going processes, for example,
notices, correspondence, etc.
Preserve – storing all content into a centralized archive will allow for consolidation of
retention timelines. Retention will be automated and will be based on workflow and case
management processes.
Security – ECM security falls into three main areas; authorization, authentication, and
electronic data interchange. The Identity and Access Management and Electronic Data
Exchange Architecture Definitions address this.
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Paper Receipt Data Collection IPACS - Images and Data Accounting System
Centralized (Short-Term Storage – ALL Data) Data Only
Scanning OCR/ICR Capture/KFI (Long Term Data Storage)
Field Level OCR/ICR
Receiving
- Inscript Software
- ICBS KFI
-Partial Data
Satellite
Full Page OCR SAN Storage
Scanning - New Software
Oracle Database
- ICBS KFI (Images) (Data) BETS & TI Databases
(Data)
Metadata Collection
eGateway- Data
- ICBS (Short-Term Storage - ALL Data )
-Sensitive Areas Users
Electronic - Satellite Locations
EDI Service
Receipt
3.2.10 Open Standard System, Development Platforms, and Enterprise Service Bus
The BPMS and corresponding technologies will be open, modular, interoperable with any
FTB system or application, and based on SOA. It will also support system message routing,
message queues, and transformation and data access through a component such as an ESB.
The BPMS will also provide the ability to create multiple environments (e.g., Development,
Staging, and Production) to facilitate authoring, modifying, compiling, deploying, and
debugging the software.
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The BPMS will provide a business process-modeling tool in a shared environment for the
capture, design, and simulation of business processes by business analysts, managers,
architects and other staff. This tool is a modeling-only environment, not an execution
environment. This tool will support the BPMN and BPEL standards, so it can work and
communicate with other BPM technologies as acquired. This tool will be the initial step in
supporting the BPM initiatives and enterprise architecture and will be used to create “as-is”
and “to-be” process models.
The business process-modeling tool will provide process-modeling capabilities that are easily
changeable by non-technical managers. These models provide a basis for cross-organizational
collaboration between managers responsible for the separate parts of a process, and with IT
staff on the implementation of the resulting design. To support simulation, models will embrace
characteristics such as roles, skills, availability, and costs of the people, and other resources
that perform the process as well as frequency and escalation conditions.
The business process-modeling tool will provide a framework to follow for modeling processes
and a fully functional dashboard allowing business staff visibility into the processes and their
interactions. This allows business users to view graphically the processes and their interactions.
The BPMS will also provide a Business Rules Engine (BRE) that is a component of the BPMS,
managed independently from processes and workflows, for business rule execution and
management. The BRE will provide decision tables and trees to assist in execution of the
business rules.
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FTB will require change to assure success in these areas and to strive for BPM maturity.
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Organizational Change
For most of the industrial age, enterprises (including FTB) have been organized as a collection
of common tasks or functions, such as design, finance, manufacturing, operations, and so on. In
the latter part of the 20th century, new organizational structures emerged, including product-line
(where all the functions for a single product are collected), and matrix (where expertise from
functional organizations is brought in and assigned to projects). More recently, Lean practices
have further evolved these models into business architectures that align people, work, and
capital to the processes that create customer value. BPM calls on the organization to adjust its
business architecture to foster value-creating business processes directly. The process-driven
organization treats these business processes as a portfolio of valuable corporate assets. BPM
techniques are used to explicitly define and execute processes in a manner that creates
significant benefits. New roles and new ways of thinking and doing business are necessary
for realizing the full benefits BPM makes possible, doing more and better, at less cost.
FTB will centrally control and manage business processes and define and establish new roles to
support the business processes. BPM requires creation of new roles that cut across functional
stovepipes to support the process-centric business. Some of these roles and the definition of
those roles include:
Chief Process Officer – executive responsible for defining and enabling the enterprise
process architecture, who fosters the process-centric business culture, including skills,
systems, and behaviors.
Process architects – individuals who design and construct models and frameworks for
the core and enabling business processes, including workflows, KPIs, and control plans.
Process owners – individuals responsible and accountable for the performance of end-
to-end processes.
Process engineers – individuals who build run-time business processes, including the
composition of orchestrated services, composite applications, and systems of
measurement, notification, and control.
Process analysts – experts who define what events should be monitored, diagnoses
process problems, and prescribes performance solutions.
Process performers – individuals who not only work inside a process, but also
understand how they fit within an extended value stream.
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Organizational Structure
To obtain the maximum benefits of implementing BPM techniques, FTB must change its
organizational structure to facilitate becoming process-centric. The FTB organizational structure
will recognize the interdependencies and relationships that foster value-creation across the
enterprise. FTB must de-emphasize hierarchical reporting relationships and empower
employees to seek improvements across organizational boundaries.
What does a process-centric organization look like? There will still need to be some functional
alignment, there is no one fit for all – a best fit is needed aligning like processes that center on
FTB customers and value propositions. The figure below (Figure 3.3-1; Example Target
Organizational Structure Model) illustrates a target organizational model that places focus on
process-centric structural organization. The model depicts an organization that “sits” on the
value-creating business framework, identifying the organizations‟ value-propositions, resources,
customers, and regulatory and social environment. It de-emphasizes hierarchical reporting,
emphasizes enterprise collaboration and sets a foundation to identify core business processes.
Information Compliance
Financial Budget & Procurement Process Office Process Office Employee
Office Accounting Office Office IPO CPO Services Process
Chief Financial BAO PO Office
Officer ESPO
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Aligning the FTB organizational structure to its value-propositions and value-chains, will position
FTB to clearly identify its business processes, and assure those business processes are in-line
with the process-centric organization.
The following figure (Figure 3.3 2: Business Process before Process-Centric Organization)
represents a before picture and (Figure 3.3 3: Business Process after Process-Centric
Organization) represents an after picture of a business process after process-centric
organizational alignment.
Process Create
IVS
Filing Info Refund
FD
CCSS
Transmit
TSD Refund Info
Intercept
SCO
Agencies
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Law/Policy Taxpayer\
Practitioner
Create Filing Design Filing Create Filing Test Filing Deploy Filing Capture Filing Process Retain Filing
Information
Rules Methods Methods Methods Methods Info Filing Info Info
Office
SCO
Intercept
Agencies
BPM provides for bringing all dimensions of a business together, and enables new levels of
participation and collaboration among teams - especially between business staff and IT staff.
The greatest barrier to change is communication. BPM lowers this barrier by increasing the
direct and immediate lines of communications and collaboration among all process participants.
Responsibilities of those involved in a BPM effort are as follows:
Leadership team:
o Articulates the strategic imperative for change
o Communicates the vision for a process-centric organization and the approach for
a continuously improving enterprise
o Authorizes structural adjustments
o Trumpets the results
Process teams:
o Agree on the metrics of business process performance
o Share process models and common business semantics
o Clearly communicate about the tasks to be performed
Everyone is:
o Authorized, empowered, and compelled to measure and analyze performance
o Participates in the design and implementation of new ways of working
o Continuously improves performance outcomes
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FTB will consider how its culture will need to change for successful BPM implementation and
adoption. To facilitate cultural change towards enterprise thinking:
FTB Focus – will move more towards enterprise unity, for example, by avoiding divisive
terms to describe the organization. Terms such as Division, Section, and Unit – all drive
to separatism. Examples of better terms to foster a vision of enterprise unity are: Office,
Bureau, Group, and Team.
Management Focus – will move more towards vision, customers, value and results. It
will be less important for managers to know how to do the work, but to enable their
employees to do the work - that is assuring employees have the right knowledge, tools,
capacity, and empowerment to do the job. Management will encourage an environment
where they can say for example: “last year 100 people, this year 50 people, doing the
same work faster, cheaper, better."
Employee Focus – will move more towards analysis and improvement of the work vs.
doing the work. Employees will fully understand the vision, reason, desired outcome,
and consequences of the work they do, and the interaction with and affects of what they
do with other areas of the department. BPM-enabled workers see processes more
clearly, are able to analyze and understand them, and participate directly in making
improvements.
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The table below (Table 3.3-3 Five BPM maturity levels) depicts the five maturity levels briefly
described in terms of their management focus and primary objective.
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“Fire-fighting management” – The objective is to “keep the lights on”, solving each crisis
1 Initial as it becomes apparent. Success in these organizations depends on the competence
and heroics of the people in the organization and not on the use of proven processes.
“Capability management” - The objective is to manage and exploit the capability of the
4 Predictable organizational process infrastructure and associated process assets to achieve
predictable results with controlled variation.
BPMM Indicators
The following table (Table 3.3 4: Comparison of Low and High BPMM Indicators) lists a
comparison between low and high maturity for common indicators of BPMM level.
Continuous process improvement is based on both small, evolutionary steps and process
innovations. BPMM provides a reference model for organizing these evolutionary and innovative
steps into five maturity levels that lay successive foundations for continuous process
improvement.
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Enabling Process Steps – regardless of the work groups, databases, or people involved,
all processes consist of actual tasks that must be completed for the process to work
properly. These tasks are called process steps. Effective process management
recognizes that the success of a process rests with those most qualified to perform and
complete the process steps. These people are the experts – the doers. If they have a
strong process management system supporting them and enabling the tasks that they
need to complete, they can get the job done effectively. To be sure the proper
assistance is given to any process, FTB must clearly identify every step of the process,
regardless of whether technology or humans support the process.
Creating a Process Design – process design examines the internal and external
workflows and processes that impact an organization and outlines a path to ensure all
aspects of those workflows and processes are interlocked. By reducing requirements for
users or improving a process so that fewer steps are required, process design helps
drive specific process steps through enterprise linkage, provision of best-of-class
procedures, and recommendations for the best solution for the function and enterprise.
Outlining Process Roles – another key area of process management that drives process
steps to completion are the people involved and their process roles. Someone must
oversee the processes, ensure compliance and usage, deploy the tools involved, and so
on. Not everyone with a role in a process must perform the process. Therefore, without
strong definitions of which roles are active and which are passive, it is possible to
implement a process that has an awful lot of talkers and few doers.
Implementing a Process Management System – another aspect of driving process steps
to completion is the implementation of a process management system. This is a
reporting method to help stakeholders track how processes are performing and alert
them to process concerns that could affect other areas of the business. Additionally to
track how changes to or issues with the process are being communicated and resolved.
Using Strategic Planning – knowing the organization‟s strategic plan and direction can
help determine process strategies. Business strategy should always be considered in
process management. The process design should fit the organization‟s current business
model and be flexible enough to change if the business model changes. Considering
business strategy as process design is developed and other aspects of process
management can help pinpoint rising trends and identify where processes should remain
flexible to meet future demands.
While a BPMS is not necessary for process management, a BPMS facilitates most of
these activities.
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4.0
4.1 Technical Architecture
A BPMS will make processes explicit, which are visible, via graphical models and will be
independent of physical resources used in execution. BPMS tools enable organizations to
document, analyze and streamline complex processes, thereby allowing business areas to
become more agile and effective. FTB will procure a BPMS solution to close gaps between
current state and target BPM architecture.
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5.0
5.1 Technical Architecture Roadmap
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5.3 Dependencies
Implementation of a robust and comprehensive BPMS at FTB will be dependent upon these
technical architectures:
Service Oriented Architecture (SOA): There is a two-way relationship with SOA. BPMS
tools will be used to design the system-to-system process flows. BPMS also relies on
SOAs for monitoring and changing processes. SOA will be required to be truly process
centric. With the implementation of SOA, business users will be able to use business
application modeling to record the activities within a database and analyze how things
are working. Users can execute their process changes within the systems in real-time
with SOA. This gives users control of systems in the end-to-end processing
Data management: Store models, flows, rules, etc. Data management will be important
for data quality assurance
Identity and Access Management: Used to define and control the workflow. The
implementation of the IAM architecture will ensure that workflow rules can be enforced
as processes move between systems and staff
BI: Provide information about process and workflow results
ECM: For unstructured data, BPMS could supply the workflow Implementation of
comprehensive and successful BPM at FTB will be dependent upon the following
Establishing Governance and a BPM methodology
Organizational and cultural changes
Establishing process management
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6.0
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